EUROPEAN UNION’S LAST DITCH EFFORT TO SAVE EURO

European Union’s (EU) economic woes continue unabated in spite of several steps taken by the European Union member countries. European Central Bank (ECB) in a bid to rescue Euro has adopted a new measure, which is first of its kind. By unlimited buying of treasury bonds from the most affected nations like Spain, Italy, Portugal, Greece, Ireland et al with a purpose to save them guaranteeing sovereign debts as per the decision announced by ECB President Mario Draghi. Though the prominent nation among the EU, Germany has strictly opposed the decision Mario Draghi has decided to implement the plan with the support extended by prominent EU nations like France.

Greece, in spite of fiscal stimulus sanctioned by EU nations twice is still reeling under the impact of economic recession. Now that Portugal has found itself in the debt trap in spite of adopting ‘austerity measures’ as demanded by the EU. The adoption of austerity measures by the Portugal govt has extensively affected the woes of its citizens and massive discontent and disillusionment are prevailing in the country. The prices of healthcare, transportation charges, electricity charges, most importantly the charges of food items have sky-rocketed and as a result the most adversely affected are children and elderly with large-scale poverty spread among them. With the adoption of austerity measures citizens especially the old men and women are at the receiving end. With the freezing of pensions, cut in social benefits, the decision to do away with pensions as part of expenditure cuts have adversely affected the citizens in Spain, Portugal, Greece etc. the elderly have found it very difficult to pull on in the twilight of life. According to a Portuguese journalist, Anna Navarro Pedro who is totally opposed to the austerity measures pointed out that such measures have adversely affected 40 percent of old men and women who are on the verge of death. Imagine the difficulties of these elder people in the sunset of their life – actually it is at this stage in their life that extreme care is needed - are undergoing ordeals with the younger members of their families treating them like slaves and ruthlessly assaulting them forcing them out of their families.

With unemployment rising alarmingly lakhs of youths have turned against the govt out of frustration, disappointment and indignation forcing them to undertake violent demonstrations. Govt’s decision of stopping the distribution of unemployment benefits has made their life a hell on earth. Likewise the steep cut in salary has resulted in lakhs of salaried class finding themselves caught in a web of economic woes and experiencing difficulties to make both ends meet.

The policy of adoption of austerity measures as part of expenditure cuts have virtually deprived the citizens of not only Portugal but the other similarly affected EU nations like Greece, Spain, Italy and Ireland undergoing the ordeal which cannot be expressed in words. Such is the intensity of sufferings they are subjected to – poverty, hunger, unemployment, stopping of social benefits, reduction of retirement age freezing of the pension to the retirees – all these steps have affected them badly.

Whether the decision to buy treasury bonds to save these countries from debt, a step taken by the European Central Bank would save the Euro from total collapse – we have to wait and see.